Economy Of Portugal

Economy overview Portugal has become a diversified and increasingly service-based economy since joining the European Community in 1986. Over the past decade, successive governments have privatized many state-controlled firms and liberalized key areas of the economy, including the financial and telecommunications sectors. The country qualified for the Economic and Monetary Union (EMU) in 1998 and began circulating the euro on 1 January 2002 along with 11 other EU member economies. Economic growth has been above the EU average for much of the past decade, but fell back in 2001-03. GDP per capita stands at 70% of that of the leading EU economies. A poor educational system, in particular, has been an obstacle to greater productivity and growth. Portugal has been increasingly overshadowed by lower-cost producers in Central Europe and Asia as a target for foreign direct investment. The coalition government faces tough choices in its attempts to boost Portugal's economic competitiveness and to keep the budget deficit within the 3% EU ceiling.
 
GDP purchasing power parity - $181.8 billion (2004 est.)
 
GDP - real growth rate -1.3% (2004 est.)
 
GDP - per capita purchasing power parity - $18,000 (2004 est.)
 
GDP - composition by sector
agriculture: 5.8%
industry: 30.7%
services: 63.2% (2004 est.)
 
Investment gross fixed 22.3% of GDP (2004 est.)
 
Population below poverty line NA
 
Household income or consumption by percentage share
lowest 10%: 3.1%
highest 10%: 28.4% (1995 est.)
 
Distribution of family income - Gini index 35.6 (1994-95)
 
Inflation rate consumer prices 3.3% (2004 est.)
 
Labor force 5.409 million (2004 est.)
 
Labor force by occupation agriculture 10%, industry 30%, services 60% (1999 est.)
 
Unemployment rate 6.4% (2004 est.)
 
Budget
revenues: $64.81 billion
expenditures: $69.09 billion, including capital expenditures of NA (2004 est.)
 
Public debt 59.8% of GDP (2004 est.)
 
Agriculture products grain, potatoes, olives, grapes; sheep, cattle, goats, poultry, beef, dairy products
 
Industries textiles and footwear; wood pulp, paper, and cork; metalworking; oil refining; chemicals; fish canning; wine; tourism
 
Industrial production growth rate 0.4% (2004 est.)
 
Electricity production 44.32 billion kWh (2001)
 
Electricity production by source
fossil fuel: 64.5%
hydro: 31.3%
other: 4.1% (2001)
nuclear: 0%
 
Electricity consumption 41.48 billion kWh (2001)
 
Electricity exports 3.479 billion kWh (2001)
 
Electricity imports 3.743 billion kWh (2001)
 
Oil production 0 bbl/day (2001 est.)
 
Oil consumption 339,800 bbl/day (2001 est.)
 
Oil exports 28,830 bbl/day (2001)
 
Oil imports 357,300 bbl/day (2001)
 
Oil proved reserves  
Natural gas production 0 cu m (2001 est.)
 
Natural gas consumption 2.542 billion cu m (2001 est.)
 
Natural gas exports 0 cu m (2001 est.)
 
Natural gas imports 2.553 billion cu m (2001 est.)
 
Natural gas proved reserves  
Current account balance $-7.592 billion (2004 est.)
 
Exports $31.13 billion f.o.b. (2004 est.)
 
Exports commodities clothing and footwear, machinery, chemicals, cork and paper products, hides
 
Exports partners Spain 22.7%, Germany 15.2%, France 12.9%, UK 10.5%, US 5.8%, Italy 4.8%, Belgium 4.6% (2003)
 
Imports $43.73 billion f.o.b. (2003 est.)
 
Imports commodities machinery and transport equipment, chemicals, petroleum, textiles, agricultural products
 
Imports partners Spain 29.1%, Germany 14.7%, France 9.9%, Italy 6.4%, UK 4.9%, Netherlands 4.6% (2003)
 
Reserves of foreign exchange gold $12.81 billion (2004 est.)
 
Debt external $250.7 billion (2004 est.)
 
Economic aid recipient  
Currency euro (EUR)
note: on 1 January 1999, the European Monetary Union introduced the euro as a common currency to be used by financial institutions of member countries; on 1 January 2002, the euro became the sole currency for everyday transactions within the member countries
 
Currency code EUR
 
Exchange rates euros per US dollar - 0.886 (2003), 1.0626 (2002), 1.1175 (2001), 1.0854 (2000), 0.9386 (1999)
 
Fiscal year calendar year

 

 

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This information was reproduced in part from the CIA World Fact book.

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